Nvidia’s huge Arm deal has just been scrapped


Graphics giant Nvidia will no longer be spending $40 billion to acquire Arm, parent company SoftBank has announced, citing “significant regulatory challenges.” The news was first reported by the Financial Times.

Nvidia will be paying $1.25 billion to SoftBank for failing to go through with the transaction, while Arm CEO Simon Segars is stepping down to be replaced by Arm’s head of IP Rene Haas, who coincidentally used to run Nvidia’s own Arm business many years ago.

“[Segars] has decided that at this stage of his career, the time and energy required to take the company public and everything around that was not something he wanted to sign up to,” Haas tells TechCrunch. “So he’s going to step down. I’m going to take over for him.”

The deal, announced in September 2020, would have been one of the industry’s biggest ever, giving GPU manufacturer Nvidia control of the company whose architecture and intellectual property is key to every practically every smartphone and tablet chip ever made, as well as a growing number of server chips, and Apple’s entire future product roadmap for its impressive Arm-powered laptop and desktop PCs. (Apple’s Arm laptop chips wowed the industry in late 2020, putting other manufacturers on notice.)

SoftBank now says that Arm will pursue an IPO in the fiscal year beginning April 1st. Nvidia declined to comment to The Verge, not even to confirm or deny that the deal had fallen through. SoftBank and Arm didn’t immediately respond to requests for comment.

The deal has been under scrutiny pretty much as soon as it was announced, with Nvidia CEO Jensen Huang frequently having to defend it in public and eventually admitting it might take much longer than planned. Scarcely two weeks ago, Bloomberg reported that the deal was falling through, after challenges from UK, EU, and US regulators worried about what Nvidia might do if it owned Arm. The FTC also sued to stop the acquisition.

Update, February 8th, 1.30AM ET: Added official confirmation from SoftBank.


Source link

Related articles

Xbox Series X consoles are available for Best Buy’s Totaltech members

The Xbox Series X is sometimes a little easier to buy than Sony’s PlayStation 5, but that doesn’t mean it’s a simple endeavor. The good news is that Best Buy has...

Our Flag Means Death creator David Jenkins fancies a fine narrative fabric

For many people, Our Flag Means Death was an unexpected history lesson about the adventures of Stede Bonnet, the real 18th-century pirate who loved the high seas almost as much as...

How to change your default browser in Windows 11

If you’ve updated your PC from Windows 10 to Windows 11, you may have noticed that when you click on a link for a website, a PDF document, or a variety...

Fortnite’s Zero Build mode is bringing people back to the game

Fortnite’s latest season kicked off a big shakeup: developer Epic Games removed building, perhaps the game’s most iconic feature, from the core battle royale modes. It was a risky move that...

What Elon Musk’s Twitter ‘free speech’ promises miss

Thursday morning, Elon Musk offered to buy Twitter to save free speech. “I invested in Twitter as I believe in its potential to be the platform for free speech around the...

Latest articles